The Municipality of Aristotelis issued a positive opinion so that the Municipal Tourism Asset Management Company can proceed with the auction of the Varvara Guesthouse at a low rent for 49 years, including a condition that modernization investment must be carried out and that the rent will be adjusted after a decade.
The property, with a building area of 416.82 sq.m., surrounding plot of 1,779.62 sq.m., and courtyard adjoining the Guesthouse of 1,322.51 sq.m., was transferred this year by the Municipality of Aristotelis to the Municipal Tourism Asset Management Company for use over a 50-year period. The property has suffered multiple damages, is currently unattractive and non-functional, and requires an investment that could reach half a million eurosa sum that neither the Municipality nor the Management Company can cover. With the intention to utilize the property, which has been idle for 25 years, and taking into account a decision by the Municipality of Aristotelis, the Management Company conducted market research and then sought a legal opinion on leasing the property.
According to the opinion, leasing the property, which serves tourism purposes, can be carried out by the Municipal Tourism Asset Management Company for 50 years (either directly or in parts) at a reduced rent on the condition that the lessee undertakes all or part of the renovation or reconstruction costs and provides any additional services, as specifically outlined in the auction terms and the accompanying technical report. Before announcing the auction, a decision must be issued by the Municipal Council of Aristotelis, passed by an absolute majority of its members, covering not only the 50-year period but also the intention of the Management Company to lease the property at a reduced rent in order to attract investors who will undertake its renovation.
The property will be leased in its current physical and legal condition, with the obligation of the lessee to make the necessary investments for renovation or reconstruction. This includes ensuring that the building becomes legally compliant or at least regularized, meets the agreed specifications for its intended use (tourism development), and obtains an Energy Performance Certificate and an electronic property identity.
